For the second quarter of 2024, the automotive segment of Icahn Enterprises reported $368 million in total revenue from customers — down 10.7% from a year ago.
A closer look shows that automotive services revenue declined 7.4% to $363 million, which management attributed to reduced consumer spending on automotive repairs and maintenance. Aftermarket parts revenue fell 75.0% to $5.00 million because of the wind down of Icahn’s aftermarket parts business.
Automotive segment gross margin decreased 4.2% to $114 million in the second quarter. However, as a percentage of net sales and other revenue from operations, gross margin increased from 29.0% to 31.0% year over year.
Segment adjusted EBITDA grew 6.3% to $34 million for the quarter. Management attributed the increase to cost-cutting initiatives, noting that it accomplished this despite reduced car count, and expects that cost-cutting and sourcing initiatives will drive EBITDA improvement in the back half of 2024.
Automotive net income increased 75.0% to $7 million.
